Bowie Knife

Have a Schrade blade. Can one sharpen the top curved part without damage to steel?

Yes, it can be sharpened.
You don't want to get the steel too hot.

I'm not sure about the legalities as far as a "carry knife" goes.

I know they have changed some of the Laws on what is allowed, but can't quote any specifics.

I'd check into the current regulations before you start.